Funding for new business

Late payments & working capital management

One of the biggest challenges facing new businesses lies in managing the gap between the issuing of an invoice to a customer and the receipt of payment. Late payments are a crucial factor in how a growing business manages its working capital. Depending on the terms of the agreement which are often dictated by the customer:

  • the period between bill & payment can be anything from a few weeks to several months
  • during this time operating costs, such as bills and wages must be honoured

Without additional working capital it can be difficult to fuel growth for your business.

Click here to read our co-founder Anil Stocker’s response to late payments.

Reduced funding for new businesses

Many businesses rely on bank finance to ensure they have enough capital, however in the current climate, banks and specialist invoice finance providers will not necessarily lend to start-ups and very young businesses. Those that will, tend to limit their offer to factoring arrangements, which will mean the lender aggressively chases debts from your customers on your behalf.
  • Handing over debt collection to a third party is undesirable
  • Can damage client relationships
  • Most factors will require you to sign up for a specified period (contractually locking you in to fees and charges) while also putting a limit on credit.

MarketInvoice funding solution

MarketInvoice offers a flexible alternative; an online invoice discounting marketplace, bringing together investors who lend money with businesses in need of finance. It is a revolutionary invoice finance model, but in this case a company can pitch for funding on individual invoices. Thus, if your business has secured an order worth £20,000, you can present that to investors on the market and raise cash against it.
  • You use the system when you need it
  • Collect your own debts – thus maintaining a relationship with the customer
  • You are not locked in, i.e. no monthly or long-term contracts
Follow the link to find out how MarketInvoice works. MarketInvoice is used by clients in the engineering, wholesale, export and import, consultancy, film, software and recruitment sectors, amongst others. For more information on which companies can use MarketInvoice please go to this page. You can also learn about MarketInvoice's Legal Services Late Payment Solution to help barristers and solicitors.